NEW ZEALAND MARKET REPORT

Summary

Good offering of finer wools this week

Comment

The South Island had a good offering of merino and halfbred wools this week.  Halfbreds suffered from a lack of support this week and dropped significantly compared to the last sale in Christchurch.  The offering of merino wool was the first reasonable quantity that we have seen here this season.  These wools were well supported and attracted keen competition from a range of buyers.  Prices were in line with what we have seen in Australia with good lines keenly sought after.

FUHRMANN NZ MARKET REPORT

Summary

Market cheaper.

Comment

South Island only offering 12,600 bales.  The selection consisted of 36% crossbred fleece wool, mainly good colour, 10% crossbred second shear 75/100mm and shorter very good colour, 20% halfbred fleece super style 22.0 to 29.0 micron, 15% associated oddments, 5% crossbred lambs, 10% merino fleece 16.0 to 21.0 micron and 4% miscellaneous types.  Main competition was again from South East Asia and China supported by Australasian carpet mills with limited support from the United Kingdom and Europe.

Fleece Wools

Good colour crossbred fleece up to 10% cheaper.

Average style crossbred fleece 5% cheaper.

Halfbred fleece up to 10% cheaper.

Second Shears

All descriptions generally 5% cheaper.

Oddments

All descriptions 5% cheaper.

Passings

29% Passed In.

Next Auction

North Island only, offering 7,100 bales, 3September 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market has shown a little more stability this week albeit in a smaller national supply. 18.0 micron and finer were dearer while 18.5 and 19.0 closed around similar levels and the buyer list was a little more evenly spread. There has not been much change in the global supply chain demand, so any week of stability is well received. There was more competition on the better fine wool as the sale progressed, particularly those with non mulesed certification as per the National Wool Declaration. Another positive sign was the dearer carding market. According to AWEX reports, 11.3% of the offering was wool that had been previously offered for sale.

AWEX Eastern Indicator compared with 21/08/2020

Eastern Indicator

Close: 929

Change in % -1.69

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2223

Change in %:  +3.35

16 Micron

Close: 1885

Change in %: -2.48

17 Micron

Close: 1580

Change in %: +0.89

18 Micron

Close: 1372

Change in %: 0.0

19 Micron

Close: 1220

Change in %: 0.0

Authentico Indicator

Close: 1607

Change in %: +0.12

Forecast

Woolgrowers are now less likely to offer their wool for sale while prices remain around this level. Brokers are advising clients not to offer wool unless it’s legitimately for sale. This is limiting the flow of wool and will hopefully keep supply in line the limited demand during this period. Next week’s national offering is currently listed as 32,000 bales.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 09                     7562                         6784                  10.3%

South                     M 09                    12926                       11411                   11.7%

West                       F 09                     no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 10                       T / W                        7374

South                      M 10                      T / W                       17224

West                        F 10                       T / W                        8360

 

If you want to see the complete Wool Sales Roster click here.

EASTERN AUSTRALIAN MARKET REPORT

Market closed around similar levels.

COMMENT

A slightly softer opening but improved as the sale progressed, particularly finer micron types.

FLEECE

17.5  micron and finer better specification 1% dearer, others very firm

18.5 micron unchanged

19.5 / 21.5 micron better specification firm, others 1% easier

SKIRTINGS

All good descriptions unchanged

OPEN TOP

Nominally unchanged

EASTERN AUSTRALIAN MARKET REPORT

Market around about. Sydney and Melbourne sale result a little different, influenced by the quality of the selection.

COMMENT

8.5% passed in. More in Sydney than Melbourne.

FLEECE

15.5 / 16.5 micron 1% easier

17.5 / 18.5 micron fully firm

19.5 micron 1% dearer

20.5/21.5 micron 1% easier

SKIRTINGS

All descriptions unchanged

OPEN TOP

Nominally unchanged

FUHRMANN NZ MARKET REPORT

Summary

Market generally firm to sellers favour.

Comment

North Island only offering 6,500 bales.  The selection consisted of 55% second shears and hogget shears mainly good colour, some average style, 10% crossbred fleece good/average colour, 20% crossbred shear oddments all descriptions, 10% end of season lambs and 5% miscellaneous types.  Main competition was again from South East Asia and China supported by Australasian carpet mills with limited support from the United Kingdom and Europe.

Fleece Wools

Crossbred fleece good colour very firm.

Average style sellers favour.

Second Shears

All descriptions generally firm.

Oddments

Clothing oddments 3% cheaper.

Passings

7% Passed In.

Next Auction

South Island only, offering 12,500 bales, 27 August 2020.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

After last week’s more positive tone, the market has struggled for any clear direction this week. A weakening US Dollar against all major currencies early in the week, left wool dearer in the main user currency. With limited demand, this was a burden too great for the market to be able to sustain. The one positive note has been the strong performance, all things considered, of the better fine wool. There appears less fine wool in general at the moment, surely contributing to this trend, but we now head into the main period for fine wool. On average this week, the Sydney merino fleece catalogue (18.6 micron) and Melbourne (19.7 micron) were about 0.5 micron broader than the corresponding sales in 2019. A better season and supplementary feeding programs during the drought would be responsible for this.

The quality from the New England region, usually the source of much of the best fine wool, will be significantly affected this year. The change in season around February 2020 has resulted in a large percentage of ‘middle break’ wools and the big rains that followed have created an abundance of feed and an increase in grass seed in the wool.

AWEX Eastern Indicator compared with 14/08/2020

Eastern Indicator

Close: 945

Change in % -5.87

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2151

Change in %:  +0.05

16 Micron

Close: 1933

Change in %: +1.63

17 Micron

Close: 1566

Change in %: -3.81

18 Micron

Close: 1372

Change in %: -3.38

19 Micron

Close: 1220

Change in %: -4.69

Authentico Indicator

Close: 1605

Change in %: -2.01

Forecast

No sale in Fremantle next week with the annual Wool Week Annual General Meetings to be held on Thursday by zoom tele-conferencing. It will be a smaller national offering.

The Wool Production Forecasting Committee has presented their latest forecast for the 2020/2021 wool season. Wool Production is expected to decline by 1.1% to 280 million kg’s following on from the 5.5% decline in the 2019/2020 season. The 1.1% fall in volume is comprised of a reduction in shorn sheep numbers by 5.5% but an expected increase in average wool cut per head of 2.9% due to the better season.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 08                     8210                         6483                  21.0%

South                     M 08                    17497                       13918                  20.5%

West                       F 08                      5687                         3168                   44.3%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 09                       T / W                        8147

South                      M 09                      T / W                       14199

West                        F 09                      no sale

 

If you want to see the complete Wool Sales Roster click here.

EASTERN AUSTRALIAN MARKET REPORT

Market cheaper. Small selection of better fine wool least affected.

COMMENT

Not much direction in the market with prices continuing lower.

FLEECE

Better specification 18.0 micron and finer nominally unchanged.

Good to average specification –

16.5 micron 1% easier

17.5 / 18.5 micron 2% easier

19.5 micron 4% easier

20.5/21.5 micron up to 5% easier

SKIRTINGS

All descriptions 3% easier

OPEN TOP

Insufficient to quote.

EASTERN AUSTRALIAN MARKET REPORT

Australian dollar stronger against the USD. Market a little easier accordingly.

COMMENT

At the 11th hour, the Melbourne sale was granted approval by the Victorian State Government to continue in the auction room under normal open cry terms.

FLEECE

Few best 16.5 micron and finer generally unchanged.

All others 1 to 2% easier

SKIRTINGS

Best and finest around 16.0/16.5 micron generally very firm. Others 1 to 2% easier

OPEN TOP

2% easier in a very small and varied offering.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market rebounded nicely this week with a firming trend and more widespread competition at the lower basis. All merino fleece types closed around 1% dearer, with some better descriptions up to 2%. 17.0 micron and finer were most affected. Prices remained within this trend until the close in Fremantle.

AWEX Eastern Indicator compared with 07/08/2020

Eastern Indicator

Close: 1004

Change in % -0.2

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2150

Change in %:  +0.14

16 Micron

Close: 1902

Change in %: +2.64

17 Micron

Close: 1628

Change in %: +0.49

18 Micron

Close: 1420

Change in %: +0.28

19 Micron

Close: 1280

Change in %: +1.27

Authentico Indicator

Close: 1638

Change in %: +0.92

Forecast

Sydney and Fremantle auctions will proceed next week as per roster. However, the Victorian Government has ruled that ‘auction houses’ in Melbourne are (now) not considered to be a ‘permitted activity’ during the current level 4 lock-down restrictions. Discussion are ongoing with the Victorian State Government for clarity and final advice on the previous permitted industry status. It is important to note that wool valuing and appraisal of the samples is considered a permitted activity and can continue. The National Auction Selling Committee (NASC), represented equally by buyers and sellers, has ruled that unless ‘permitted activity’ status is granted by close of business Monday, then Melbourne sale 8 will be sold over three days (Tuesday, Wednesday and Thursday) as an online open cry auction via zoom.

The three-day schedule would be implemented to reduce the number of lots / bales to be offered each day, allowing buyers and brokers to adjust to this alternative selling method.

The New Zealand Merino Company will offer 200 lots of crossbred wool at the completion of the Australian offering in Melbourne. Under these circumstances, this is a decision that’s hard to understand.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 07                     8704                         7781                  10.6%

South                     M 07                    16092                      14901                   7.4%

West                       F 07                       5476                        5101                    6.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                       T / W                        8299

South                      M 08                      T / W                       21097

West                        F 08                          W                            5856

 

If you want to see the complete Wool Sales Roster click here.